Brand determines the source or maker of a product. Customers appraise identical products differently supported their marketing. Customers find out about the brands primarily based on past experience with the product and also the promoting efforts that support it. Brands simplify deciding for consumers and reduce risks for them, particularly once the customers are leading busy lives.
Brand image is the driver of brand name equity. The image of the brand will move the brand worth upwards or down. And adds visual and verbal dimensions within the mind of the client and moves the worth upwards or down. The name Mercedes Benz, as an example, adds radical worth to the product. For a client who isn't conversant in the Mercedes brand, the products are simply another car! Therefore, brand image is the intervening variable that makes it worth a product. Firms enlarge their product combine by stretching existing product lines or create new product lines or each. Correspondingly, they use the present names or use new brand names or use a mixture of the company name and also the product brand name.
There are certain factors that are internal and external to the business, which directly or indirectly affect the marketing strategies of a brand, which are as follows.
When the market size for the product category is big, an organization will follow a product marketing strategy provided the sales generated could fund the investment within the brand. Within the case of the comparatively small size of a market, growing slowly as well, the investments in an exceeding brand might not be even. In such circumstances, the company should inspect investment existing brand assets and get into for choices like double branding, umbrella marketing or endorsement marketing. This may scale back the branding expenditure and additionally reduce the payback period for the brand.
When the competition is fierce, there's a large need to extremely differentiate the product provides. This needs communicating specific client advantages and therefore the brand's temperament dimensions. the alternatives on the market to the merchant in an exceedingly competitive surrounding are product branding, endorsement marketing or double marketing counting on the resources on the market. If the competition is low, there might not be a requirement to form separate brands for every offer.
Building a brand is expensive. If the resources are scarce, an umbrella marketing strategy may be a good plan to execute. In this, a typical equity pool is formed, and therefore the entire range of products will exploit this equity. Of course, the product quality needs to be sensible and therefore the client service should be good as well.
As organizations and markets grow, there's a proliferation of recent products. The consumers have tremendous alternative to brands beneath many product categories. Suppose a company adopts an umbrella marketing strategy like the one followed by Philips or Samsung for its new product, it becomes extraordinarily difficult. Mostly for its consumers, to create a purchase call since the brand currently stands for a large range of product. So as to differentiate the completely new features of the new product, the company may need to follow the product-branding strategy. This is often a costly proposition. The other choices include following a double marketing strategy (e.g. Tata Indica) or an endorsement branding strategy like Kellogg for its breakfast cereal brand, Chocos.
Really riotous innovations like an entirely new product category or a major technology breakthrough present special issues in marketing. The company needs to check that that the success of the product brings recognition to the organization however if the product fails for a few reasons, the sales of different brands should not get negatively affected. In this case, a product marketing approach works best. However, the investments to be made should be quite high. Subsequent to the market possibility the next available option is endorsement marketing, where there is a mention of the name of the company. As an example, Apple, Du Pont, and 3M follow product branding and endorsement marketing ways. A double branding strategy followed by Tata Motors for its Indigo brand is another option if the company is assured of the new brand.